30% of respondents invested over US$500mn in the water sector in 2024

Global law firm White & Case LLP has released a new report, Currents of Capital 2025, revealing strong investment momentum in water infrastructure, technology and services throughout 2024, with capital deployment set to rise further in 2025.

The findings are based on a survey of over 300 senior leaders from across the water value chain, including utilities, multinational corporations, investment funds, engineering firms and technology providers in more than 20 countries.

According to the report, 30% of respondents invested over US$500mn in the water sector in 2024, with 15% allocating more than US$1bn.

Infrastructure funds led this activity, deploying an average of US$1.3bn each, nearly matching the average US$1.5bn from public sector entities.

Multinational corporations accounted for much of the remaining investment.

Looking ahead, 72% of organisations expect to increase their water-sector spending by up to 50% in 2025, while 4% anticipate even steeper increases.

This signals rising confidence in the sector, underscoring growing awareness of water’s importance to both economic security and sustainable development.

Investment priorities are shifting, with 40% of respondents now viewing water as their top investment focus and 33% targeting portfolio growth, moving away from maintenance-driven spending towards strategic expansion.

Technology is seen as a central enabler of this shift, with more than 60% citing AI as the most likely driver of transformation in the sector.

While Western Europe and North America remain the top destinations for capital deployment, geographic diversification is picking up pace.

Asian investors are expanding into Western markets to tap advanced water management technologies, while 29% of all respondents are exploring new regional opportunities.

Growth in MENA

Notably, 40% of infrastructure funds identified the Middle East as a major growth opportunity, suggesting that they are taking a targeted yet calculated approach to broadening their investment horizons.

While just over one in three infrastructure funds believe the Middle East offers their company the greatest growth potential, private equity funds and multinational firms are increasingly turning to Asia for expansion.

The trend is being driven by infrastructure funds, technology providers, and international organisations, but the survey data indicates that only 29% of respondents are actively considering global diversification.

Transatlantic investment flows between North America and Europe remain strong, reinforcing a deepening relationship that facilitates both capital movement and knowledge exchange.

However, challenges persist. Water scarcity topped the list of sector concerns, with 88% of respondents ranking it as important or very important.

The high cost of technology solutions was also flagged, with 81% noting this as a significant barrier to progress.

One of the flagship projects underway is the Eastern Tunnel Project in Jeddah

The National Water Company (NWC) has begun a slew of wastewater treatment projects in Saudi Arabia, focusing on Jeddah and the country's northern borders.

It is launching 15 major development projects worth more than US$613mn (SAR 2.3bn) in Jeddah, aimed at enhancing wastewater services and operational efficiency for more than 1.3 million residents.

These initiatives form part of NWC’s wider strategy to expand infrastructure and improve service quality across key urban areas.

One of the flagship projects underway is the Eastern Tunnel Project in Jeddah, which involves constructing a sewage pipeline from areas east of Haramain Road to Lift Station 2 at the airport.

Valued at over US$206mn (SAR 774mn), the project will use advanced tunnelling technologies that minimise surface disruption, preserving traffic flow and existing services.

The 14 km transmission line will serve as a vital conduit for improving environmental systems in districts such as Braiman, Al Manar, Al Ajwad, and others, benefiting approximately 1.1 million people.

Additionally, NWC is developing a sewage lifting station at the airport with a daily capacity of 611,000 m³, at a cost exceeding US$244mn (SAR 915mn), to support pollution reduction and network expansion.

In the Samer districts, more than 17.8 km of new sewerage lines are being laid in a US$14.4mn (SAR 54mn) project, targeting 20,000 beneficiaries.

The company has also launched ten feeder line projects across several Jeddah districts and two surface water reduction initiatives in Bahra and Kilo 14, collectively valued at US$165.33mn (SAR 620mn).

In total, the Jeddah projects cover over 238 km and serve more than 184,000 people.

Supporting the northern residents

Through the company's Northern Cluster, NWC has also commenced work on two major sanitation projects in Saudi Arabia’s Northern Borders region, with a combined investment exceeding US$107mn (SAR 400mn).

The first project involves the construction of a tertiary wastewater treatment plant in Arar, designed to handle up to 40,000 m³ per day, alongside a lifting station with a capacity of 72,000 m³ per day.

This initiative alone is valued at more than US$91mn (SAR 341mn).

The second project focuses on expanding sewage infrastructure in Rafhaa Governorate, where over 74 km of sewage pipelines will be laid, and a lifting station with a 22,000 m³ daily capacity will be built at a cost of more than US$15.7mn(SAR 59mn).

NWC stated that these projects align with its broader strategy to meet rising demand for water and sanitation services, while also contributing to improved quality of life and supporting the goals of Saudi Arabia’s Vision 2030. 

The company added that these developments aim to accelerate development and to increase the percentage of services in unserved districts to increase operational efficiency in the water and wastewater sector.

SWA oversees the production of over 15 million cubic metres of water daily

In celebration of World Water Day 2025, the Saudi Water Authority (SWA) launched 'Magic of Water', a documentary showcasing the Kingdom’s transformation from one of the most water-scarce nations to the world’s largest producer of desalinated water.

The film celebrated the visionaries, scientists, and communities who contributed to overcoming the country’s water challenges, demonstrating how determination and ingenuity could drive global solutions.

Saudi Arabia’s journey in water security and sustainability has marked a significant shift from its arid landscape to becoming a global leader in desalination and environmental stewardship. Through strategic investments, cutting-edge technology, and bold policymaking, the Kingdom has secured its water supply while setting new international benchmarks in water management and conservation.

SWA oversees the production of over 15 million cubic metres of water daily, managed through both public and private sector partnerships.

A state-of-the-art transmission network spanning more than 14,000 km delivers water across diverse terrains in collaboration with the Water Transmission Company (WTCO) and private sector partners.

Further distribution extends through a 135,000 km network, reaching cities and rural communities nationwide. Wastewater collection and treatment, managed by the National Water Company (NWC), ensures sustainable reuse in agriculture, industry, and mining.

The role of advanced technology

Technological advancements also played a crucial role in this transformation.

Saudi Arabia has integrated AI-powered desalination plants to enhance operational efficiency, developed eco-friendly water transport systems to reduce environmental impact, and pioneered anti-corrosion solutions derived from palm trees to extend infrastructure longevity.

These innovations position the Kingdom as a hub for global water technology while reinforcing its commitment to sustainability and climate resilience.

Aligned with the Saudi Green Initiative, SWA’s efforts led to a reduction of 37 million tons of carbon emissions annually since 2019, demonstrating its leadership in green technologies. With a 65% local content ratio in desalination projects, the Kingdom stimulated economic growth, created high-skilled jobs, and reinforced its status as a global water technology hub.

“Securing water is securing the future,” said H.E. Eng. Abdullah bin Ibrahim Al-Abdulkarim, president of the Saudi Water Authority (SWA). “At SWA, we are not only building the world’s most advanced water infrastructure but also redefining how nations approach water security. Our accomplishments in desalination, sustainability, and efficiency are not just for Saudi Arabia—they serve as a model for the world.”

Saudi Arabia also expanded its leadership beyond its borders by fostering international cooperation in water security. The Kingdom is prepared to host the World Water Forum in 2027, establishing the Global Water Organisation to drive international collaboration, and launched a US$10mn Global Prize for Innovation in Water to inspire breakthroughs in water technology.

Also read: ENGIE divests power and desalination assets in Kuwait and Bahrain to ACWA Power

These strategic partnerships align with Italy’s Mattei Plan.

Metito Utilities, a leading global investor, developer, and operator of sustainable water management solutions, has signed three Memoranda of Understanding (MoUs) with Cassa Depositi e Prestiti (CDP), SACE, and ACEA S.p.A. to drive transformative water infrastructure projects across Africa, the UAE, and other high-need regions.  

The agreements were formalised during the UAE-Italy Business Forum in Rome and were signed in the presence of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, and Italian Prime Minister Giorgia Meloni.

These strategic partnerships align with Italy’s Mattei Plan and the United Nations Sustainable Development Goals, reinforcing international cooperation in sustainable water infrastructure development.  

Italy-UAE bilateral ties

The collaboration with CDP, Italy’s national promotional institution and development bank, will facilitate financing for water projects in Africa’s Official Development Assistance (ODA)-eligible nations, addressing critical infrastructure gaps while creating opportunities for Italian businesses.  

Through its partnership with SACE, Italy’s Export Credit Agency, Metito Utilities will gain access to innovative financial solutions and insurance mechanisms to accelerate the development of water projects in Africa, the UAE, and other key regions.

This cooperation aims to strengthen economic ties between Italian industries and emerging markets while advancing sustainable development goals.  

Metito Utilities’ alliance with ACEA S.p.A., a leading provider of water, energy, and environmental services, will drive cutting-edge advancements in water treatment, desalination, and distribution networks across Africa and the Middle East.

Together, they will implement next-generation water security solutions to ensure safe and sustainable access to clean water in regions facing severe shortages.  

Additionally, Metito Utilities will leverage its AWID framework, an industry-first platform dedicated to scaling up climate-smart water projects, to secure diverse funding sources and execute large-scale infrastructure initiatives that enhance water security across the African continent.  

Rami Ghandour, CEO of Metito Utilities, said, "As countries work to achieve water security for their growing communities, these partnerships create unprecedented opportunities to accelerate sustainable solutions. By combining Metito Utilities extensive experience with Italian expertise and financial capabilities, we are creating a powerful framework to address critical infrastructure needs and enhance water security across multiple markets. Building on our commitment to Africa initiated with Africa Water Infrastructure Development (AWID) launched with British International Investment, these collaborations further underscore our dedication to developing sustainable water infrastructure across the continent.”